Channel9 Forums has put together another great video showcasing technology from Microsoft's Research group. This latest video is a prototype of Microsoft's new "touch light" technology. Right now its still in the early stages, so don't expect to see any applications interacting with it. However this "touch light" technology is showing a lot of promising possibilities, such as better video conferencing and a more unique kind of interaction between applications & users.
Video: "touch light" demo
News source: Channel9 Forums